Bitcoin mining is the process by which new bitcoins are introduced into circulation and transactions are validated within the network. It relies on a consensus algorithm called Proof of Work (PoW), where miners compete to solve complex cryptographic puzzles. This process requires substantial computational power, ensuring network security and integrity.

Miners often join distributed mining pools to combine their resources, increasing their chances of solving these puzzles and earning rewards. When a miner successfully solves a puzzle, they add a new block to the blockchain and are rewarded with newly minted bitcoins. However, this reward is designed to halve approximately every four years in an event known as the "halving”.

Miners often must sell portions of their Bitcoin reward in order to stay profitable as a miner.